![[Geojit Comtrade] Daily report on Natural Rubber: December 11, 2012](https://img.globalrubbermarkets.com/2024/08/geojit-comtrade-daily-report-on-natural-rubber-december-11-2012.jpg?fit=336%2C252&ssl=1)
SINGAPORE, Sept 17 (Reuters) –
- Japanese rubber futures posted their biggest single-day gain in more than three months on Tuesday, buoyed by weather disruptions across global producing regions, while stronger oil prices also lent support to the market.
- The Osaka Exchange (OSE) rubber contract for February delivery JRUc6, 0#2JRU: closed up 15.6 yen, or 4.35%, at 374.5 yen ($2.66) per kg, recording its steepest daily rise since June 7.
- Japanese markets were closed on Monday for a holiday.
- The Shanghai Futures Exchange is closed on Sept. 16 and 17 for the Middle Autumn Festival in China. The market will resume trading on Sept. 18.
- World supply of natural rubber is increasingly challenged by persistent harvesting disruptions, as production in Thailand, Vietnam, Laos and Myanmar is badly hit by unusually heavier seasonal rains and floods, said Jom Jacob, chief analyst at Indian analysis firm What Next Rubber.
- Market participants are widely expecting aggressive buying especially from China when the country reopens on Wednesday, since inventories in Qingdao warehouses are down to an “abnormal low level”, and production is poised to fall below expectations for the year, added Jacob.
- The natural rubber market is mainly supported by typhoon weather, with a significant reduction in raw material supply expected from producing areas in Hainan, said Chinese financial information site Hexun Futures.
- Oil prices extended gains as the market eyed U.S. output concerns in the aftermath of Hurricane Francine and expectations of lower U.S. crude stockpiles. O/R
- Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
- The front-month October rubber contract on Singapore Exchange’s SICOM platform STFc1 last traded at 192.5 U.S. cents per kg, up 2.1%.
($1 = 140.5600 yen)
Reporting by Gabrielle Ng; Editing by Subhranshu Sahu
